She explained that the package introduces an amendment to the Value Added Tax (VAT) law, reducing the VAT rate on medical devices to 5% instead of 14%, while exempting inputs, parts, dialysis supplies, and kidney filters from VAT. The move aims to support the healthcare sector, ease the burden on citizens, and promote local manufacturers and products.
The measures come under the directives of Finance Minister
Ahmed Kouchouk to expand tax incentives and support vital sectors.
Abdel-Aal added that the package extends the maximum
deferral period for VAT on machinery, equipment, and medical devices used in
industrial production to four years, based on reasons and justifications
approved by the Tax Authority.
It also exempts services provided for goods in transit from
VAT, provided transport is conducted under Customs Authority supervision and in
line with Customs Law regulations, supporting and stimulating transit trade
within Egypt.
She noted that household-use soap and industrial detergents
are subject to the standard 14% VAT, allowing taxpayers to deduct all
production inputs, in accordance with international best practices and the Tax
Authority’s policies to ensure tax fairness.